Dana Gas says not aware of sukuk-holder action

Dubai, November 5, 2012

Sharjah-based Dana Gas, which failed to repay a $920 million Islamic bond, or sukuk, on maturity last week, said it is unaware of any action from bondholders against the company.

A source close to holders of the bond said creditors will stake claim to the natural gas producer's extensive Egyptian assets, after Dana became the first firm from the UAE not to repay a bond on maturity.

"With reference to recent media reports that Dana Gas' sukukholders will pursue enforcement action against the company, Dana Gas confirms that it has no knowledge of such action and that discussions with the adhoc committee of sukukholders continue to progress constructively," Dana said in a statement.

Dana, a leading Middle East natural gas company, said last week it was in talks with bondholders to amend and extend the terms of the bond, or sukuk.

A major chunk of the bond is said to be held by large investment firms like BlackRock and Ashmore.

Shares in Dana ended 2.4 per cent lower on Monday, after falling as much as 7.3 per cent intraday, and accounted for nearly half of all shares traded on the Abu Dhabi bourse. – Reuters